Asked by Gihanthi De Silva on Sep 28, 2024
Verified
All of the following are necessary to calculate the customer lifetime value EXCEPT ________.
A) customer level operating profit per year
B) length of customer relationship
C) economies of scale
D) discount rate
Customer Level Operating Profit
Customer Level Operating Profit refers to the profit earned from a customer, after deducting operating expenses directly associated with serving that customer.
Length of Customer Relationship
The duration over which a business maintains a relationship with an individual customer, significant for understanding customer loyalty and value.
Economies of Scale
Economies of scale are cost advantages that businesses obtain due to scale of operation, with costs per unit of output decreasing with increasing scale.
- Comprehend the principle of customer lifetime value (CLV) and the method of its computation.
- Identify key components necessary for calculating customer lifetime value.
Verified Answer
Learning Objectives
- Comprehend the principle of customer lifetime value (CLV) and the method of its computation.
- Identify key components necessary for calculating customer lifetime value.
Related questions
By Analyzing Customer Lifetime Value,a Firm Can Most Likely ________ ...
Which Term Refers to the Net Present Value of Future ...
Which of the Following Is NOT One of the Categories ...
In Most Cases,a Long-Term Customer Relationship Is ________ a Short-Term ...
In Marketing Strategy,________ Refers to the Ratio of Customer Benefits ...